Wealth Management in Argentina 2005

• Sizing and forecasting of mass affluent and high net worth individuals were generated from Datamonitor's proprietary Global Wealth Model.
• Assesses competitive developments among the region's main players.
• Key companies covered: Banco de la Nacion Argentina, Banco Rio de la Plata & Banco de Galicia y Buenos Aires.
• Geography: Argentina.

• Assess market attractiveness by reviewing size and growth forecasts up to 2009.
• Assess the threats and opportunities for wealth managers in the market.
• Learn strategies to enhance share of wallet from client base.

EXECUTIVE SUMMARY

INTRODUCTION

What is this report about?

Who is the target reader?

How to use this report

Note on exchange rates

ARGENTINE MASS AFFLUENTS AND HIGH NET WORTHS

Introduction

Argentina's retail savings and investments market has changed substantially since 2001

Prior to 2001 98% of Argentina's retail investments were held in deposits, but the corralito dramatically changed the investment landscape

46,000 wealthy Argentines hold EUR15bn in onshore liquid assets, but the population took a fall in the early part of this century

The economic crisis of 2001 wiped out more than 7,000 wealthy individuals

Market size has recovered, but trust has not

Government debt was restructured in 2003 to instill greater investor confidence

But the plan brought with it several problems

However the Argentine banking system is starting to recover

But Argentine banks must make sure they invest in disaster recovery measures

The regulatory environment in Argentina is open, but difficult to navigate

Foreign bank ownership is not restricted in the country

But banking regulation is inconsistently applied

Data Tables

COMPETITION FOR ARGENTINE WEALTHY CLIENTS

Introduction

Argentina's banking market is concentrated and foreign competition is strong

The 10 largest banks hold more than 70% of total deposits

Foreign banks are well-established in the country

Onshore wealth management is relatively limited

Several foreign banks do have some form of local representative office but most target wealthy clients from offshore centres

Banco de la Nación Argentina is the largest bank in the Argentine market

Banco Rio de la Plata is one of the few Argentinian banks to offer a specialised private banking service

Banco de Galicia y Buenos Aires is Argentina's largest private bank (ie, not public)

Significant flows of wealth move offshore, much of it to Miami

Some estimates put Argentine offshore wealth at more than USD100m

Miami is a favorite destination for Argentine wealth

FUTURE MARKET SIZE

Introduction

By 2009, 56,200 Argentines will hold EUR18.9bn in onshore liquid assets

Both the government & the central bank of Argentina have a responsibility to ensure the growth of the Argentinian economy

The banking market as a whole will have to confront several challenges

Private banks will have to adapt the way they do business and concentrate on inspiring consumer confidence

Data Tables

APPENDIX

Definitions

Aggregate

High net worth (HNW)

Liquid assets

Liquid asset bands

Mass affluent

Global Wealth Model Methodology

The UK sub model

European sub model

Forecasting methodology

Continuous refinement to the understanding of liquid wealth distribution

Specific changes to data this year

Datamonitor's wealth numbers compared with other wealth numbers

Further Reading

Global Wealth Management SPP

Interactive Databases

Market Reports

Strategic Insight Reports

Wealth Management Competitor Tracker

Datamonitor Asia Pacific Wealth Management SPP

SPP writing team

List of Tables

Table 1: Argentina mass affluent onshore liquid assets, EURbn, 2000-4

Table 2: Argentina number of mass affluent individuals, EURbn, 2000-4

Table 3: Argentina high net worth onshore liquid assets, EURbn, 2000-4

Table 4: Argentina number of high net worth individuals, EURbn, 2000-4

Table 5: Argentina mass affluent onshore liquid assets, EURbn, 2005-9

Table 6: Argentina number of mass affluent individuals, EURbn, 2005-9

Table 7: Argentina high net worth onshore liquid assets, EURbn, 2005-9

Table 8: Argentina number of high net worth individuals, EURbn, 2005-9

List of Figures

Figure 1: Argentina's currency crisis in 2001 completely changed the retail investment market

Figure 2: Millionaires in Argentina hold nearly half of all onshore liquid wealth, 2004

Figure 3: The corralito had a terrible effect on Argentina's wealthy

Figure 4: The top 10 banks in Argentina hold more than 70% of all deposits in the country

Figure 5: Argentine onshore wealth will grow steadily to 2009